pembrokeplas

Guy Totino’s new financial interest in redeveloping the ’s Western Pennsylvania Divisional headquarters building Downtown comes with plenty of old memories.

“When we were in grade school, we used to play basketball there in Saturday leagues,” said Totino of himself and his partner, Rob Vadas, Pittsburgh natives who now are principals of

, based in suburban Cleveland. “We went from playing there as kids to having it under contract.”

Last week, Polaris reached an agreement of sale with the Salvation Army, which awaits approval from its national parent to finalize the deal. Expecting to pursue a lengthy 260-day due diligence before closing on the sale, Polaris sees strong potential to redevelop the nine-story, 93,000-square-foot building for new uses.

The project is the second Polaris is pursuing in the Pittsburgh area. A company that specializes in real estate development and housing that serves educational markets, Polaris expects to break ground on a 17-story apartment building called The Chelsea at the corner of Craig Street and Centre Avenue in Oakland in May. The apartments are expected to target professionals and academics who work nearby in the area’s universities and hospitals.

With the Salvation Army property, Totino sees an opportunity to serve Downtown educational institutions such as the

and Point Park University.

Totino would not divulge what Polaris has agreed to pay for the property. Officials of the Salvation Army Western Pennsylvania Division would not comment on the potential sale.

Salvation Divisional Commander Robert Reel told the Business Times in April 2007, when it first decided to sell the building, that the charity was seeking between $5 million and $6 million. The charity has since relocated its headquarters to Carnegie, leaving behind a building constructed specifically for its use in 1924.

That original design brings plenty of charm and potential, as well as a challenge for Totino.

Totino said the building is still in excellent condition. Although there is the presence of some lead paint and asbestos, he doesn’t believe these will prove to be a major problem to remove.

The bigger issue in reinventing the building comes from finding ways to eliminate or reuse some of its quirks, such as the gym in the basement that’s surrounded by a balcony, as well as a nonfunctional swimming pool. One of the upper floors includes a full cafeteria-scale kitchen, which the Salvation Army uses as a place for domestic abuse victims to stay with their families.

“It’s obviously going to be a major redevelopment,” Totino said.

Yet he sees opportunity in the beauty he saw in the building’s first floor chapel, which could be converted into a lecture hall or performance venue, with a capacity for 350 people. The building’s upper floors could be converted for residential use, serving the mix of students attending classes at nearby schools or as classroom.

Totino said it was too early to provide an estimate of what such a redevelopment would cost. Polaris has yet to establish financing for the project, either.

Polaris is working with O’Hara-based Massaro Corp., who will serve as both contractor on the project and also will market it.

Steve Massaro, vice president of development for the company, sees the same kind of opportunity with the Salvation Army building as his company did with the former Tri-State Terminal building on nearby First Street. Massaro was the contractor and remains a part-owner in the $20 million historic renovation that converted the building into what is now known as Shannon Hall, which is fully occupied by Art Institute students.

“First of all, Downtown is very good right now. There’s a lot of activity in Downtown,” Massaro said. “With some of the bigger chunks being taken, there’s not a lot of larger spaces. For educational purposes, there aren’t too many options.”

George Pry, president of the Art Institute of Pittsburgh, acknowledges meeting with Totino about the building and how it might be used by his institution. At one time, the Art Institute also considered buying the building.

While he’s hopeful for its redevelopment, Pry said the Art Institute has 70 to 80 residential openings right now at a down time of year when it usually expects to have 20. Still, he expects the Salvation Army building could help serve the Art Institute.

“I still think in the big picture that we’re going to need spaces by the time that’s developed,” he said.


Rachat credit immobilier Reims